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Courthouse Station Homeowners Association, Inc. Policy Resolution 2006-1

Purpose: Policies and Procedures Regarding the Collection of Assessments

WHEREAS, Article IV, Section 1 of the Declaration personally obligates each Owner to pay assessments to fund the common expenses of the Association; and

WHEREAS, Article IV, Section 8 sets forth the remedies of the Association for the non-payment of assessments; and

WHEREAS, the Board of Directors deems it necessary and in the best interests of the Association to establish the orderly procedures for the billing and collection of assessments which will supercede the previously published Resolution on Assessments as adopted August 22, 1991.

NOW, THEREFORE, BE IT RESOLVED THAT the following procedures regarding the collection of assessments shall be adopted.

I. ASSESSMENT OBLIGATIONS

A. The annual assessment shall be due and payable on the first (1st) day of

January of each year. The Board of Directors has elected to permit the Owners to pay the annual assessment in quarterly installments due on the first (1st) day of each quarter (January 1, April 1, July 1 and October 1). Should default occur in the payment by an Owner of any quarterly assessment, the Board may accelerate the due dates of any and all remaining quarterly installments, as more fully set forth in Section II(C) herein.

B. The Association will mail a notice to the address of record of every Owner

which will inform the Owner of the amount of the annual assessment or any quarterly installment thereof; however, no Owners will be excused from the obligation to pay the assessment if a notice is not received. Each Owner is under a duty to seek out information about the assessment if a notice is not received.

C. Non-resident Owners must furnish the Association with an address and

telephone number where they can be contacted; otherwise, all notices shall be sent to the property address, which will be deemed to be the address of record, and the Owners shall be responsible for the information contained therein.

II. REMEDIES FOR NON-PAYMENT OF ASSESSMENTS

A. Late Charge - Any quarterly installment of the annual assessment not paid to

the Association within thirty (30) days after the due date shall be considered delinquent and a late charge of five dollars ($5.00) or five percent (5%) of the amount of the delinquent payment, whichever is greater shall be assessed to the Owner and posted to the Owner=s account.

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B. Returned Check Charge - If the Association receives a check from an Owner

which fails to clear the Owner=s account, a reasonable service charge in the amount of twenty-five ($25.00) shall be charged to the Owner and posted to the Owner=s account.

C. Acceleration of Assessments - If any quarterly installment of the annual

assessment is not paid within thirty (30) days of the due date, the entire balance of the annual assessment may be accelerated and due in full, unless other payment arrangements are approved in writing by the Board of Directors or its authorized agent. In the case of Owners who have overdue balances carried forward from a prior fiscal year, the Association may accelerate the annual assessment on any such account as soon as the first quarterly installment is not timely paid.

D. Suspension of Privileges - If any quarterly installment of the annual

assessment is not paid within thirty (30) days of the due date, the Owner’s rights, privileges and benefits of ownership may be suspended as provided for in Article V, Section (d) of the Declaration.

D. Interest - If a default by an Owner in paying any sum assessed against such

Owner=s Lot continues for a period in excess of thirty (30) days, interest from the date of delinquency at the rate of twelve percent (12%) per annum (or the maximum rate allowed by law, whichever is less) may be assessed on the principal amount unpaid from the date of delinquency until paid. The assessment of interest shall not preclude collection of a late charge, nor shall such late charge be considered interest.

E. Notices of Delinquency

1. If any quarterly installment payment is not postmarked within thirty (30) days from the due date of such assessment, a notice of delinquent account (first reminder notice) will be sent to the Owner advising that such delinquent account is subject to a late charge of five dollars ($5.00) or five percent (5%), whichever is greater, of the amount of the delinquent payment for the quarter the assessment was not timely received plus twelve percent (12%) interest per annum (or the maximum rate allowed by law, whichever is less) on the principal amount unpaid from the date of delinquency until paid; and

2. Thirty (30) days from the date that the first reminder notice was sent, a second notice of delinquent account (second reminder notice) will be sent to the Owner advising that payment of the delinquent amount, including any interest and late fees is required to avoid commencement of legal action; and

3. In the event that it is necessary to proceed expeditiously with legal

action against a delinquent Owner to protect the interests of the Association, or in the event that there may be other extenuating circumstances, the Association may dispense with one or more of

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these Notices of Delinquency. Examples of such circumstances include, but are not limited to: Owners with delinquent balances carried forward from a prior fiscal year; or if the Association anticipates conveyance of a Lot subject to a delinquent assessment balance, against which Lot no lien is on record.

F. Referral to Association=s Attorney - If any installment of the annual

assessment is delinquent, the Association may refer the account for legal action. The Board of Directors may authorize any appropriate legal action including the recordation of a lien in the Fairfax County land records, the obtaining of a personal judgment, and enforcement of such judgment as may be appropriate. By specific resolution of the Board of Directors, the Association may authorize the attorney to pursue lien foreclosure. The Owner will be responsible for the payment of, and will be assessed, any costs and attorney=s fees incurred by the Association to collect a past due balance regardless of whether a lawsuit if filed.

G. Special Payment Arrangements - Notwithstanding the foregoing, the Board of

Directors may enter into payment arrangements with delinquent Owners when, in the sole discretion of the Board, it has been determined that extenuating circumstances exist so as to warrant such special arrangement, and the Board receives reasonable assurances from the Owner that all amounts in arrears including delinquent assessments, late charges, interest, attorneys fees, lien fees, court costs, and other collection costs will be paid in accordance with the terms of such agreement.

H. Method of Crediting Payments - Payments received by the Association from

delinquent Owners shall be credited in the following order of priority:

(1) Any attorney=s fees, court costs and other costs of collection; (2) Late charges; (3) Interest; (4) Charges assessed against an Owner resulting from a violation

of the governing documents; (5) Any additional, individual or special assessments; and (6) Annual assessment or quarterly installments of the regular

annual assessment. This resolution was duly adopted by the Board of Directors this 31st day of January 2006 and supercedes the previously published Resolution on Assessments dated August 22, 1991.